Correlation Between Kbi Metal and Woori Technology
Can any of the company-specific risk be diversified away by investing in both Kbi Metal and Woori Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kbi Metal and Woori Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kbi Metal Co and Woori Technology Investment, you can compare the effects of market volatilities on Kbi Metal and Woori Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kbi Metal with a short position of Woori Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and Woori Technology.
Diversification Opportunities for Kbi Metal and Woori Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kbi and Woori is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and Woori Technology Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woori Technology Inv and Kbi Metal is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kbi Metal Co are associated (or correlated) with Woori Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woori Technology Inv has no effect on the direction of Kbi Metal i.e., Kbi Metal and Woori Technology go up and down completely randomly.
Pair Corralation between Kbi Metal and Woori Technology
Assuming the 90 days trading horizon Kbi Metal is expected to generate 1.4 times less return on investment than Woori Technology. In addition to that, Kbi Metal is 1.01 times more volatile than Woori Technology Investment. It trades about 0.04 of its total potential returns per unit of risk. Woori Technology Investment is currently generating about 0.06 per unit of volatility. If you would invest 408,000 in Woori Technology Investment on August 29, 2024 and sell it today you would earn a total of 480,000 from holding Woori Technology Investment or generate 117.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kbi Metal Co vs. Woori Technology Investment
Performance |
| Timeline |
| Kbi Metal |
| Woori Technology Inv |
Kbi Metal and Woori Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Metal and Woori Technology
The main advantage of trading using opposite Kbi Metal and Woori Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, Woori Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Woori Technology will offset losses from the drop in Woori Technology's long position.| Kbi Metal vs. Daesung Private Equity | Kbi Metal vs. Busan Industrial Co | Kbi Metal vs. Busan Ind | Kbi Metal vs. Shinhan WTI Futures |
| Woori Technology vs. Cube Entertainment | Woori Technology vs. Dreamus Company | Woori Technology vs. LG Energy Solution | Woori Technology vs. Dongwon System |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |